Is consulting really rebounding, or is it the growth in outsourcing that has been propping up the industry of late? With all the outsourcing headlines in the news these last months, you would not be a fool to ask. When the industry announced its Q1 growth figures earlier this year, there was something close to euphoria as consultancies achieved their sixth successive quarter of expansion. But this was more of an outsourcing boom than anything else, with consulting revenues having shown anaemic growth over the same period.
As of today, however, consulting proper is starting its comeback. The latest industry revenue figures, just released by the Management Consultancies Association, show that underlying growth between Q2 2003 and Q2 2004 was 10.1%. This like-for-like figure comprises growth in Outsourcing, IT Consulting and Management Consulting revenues. While outsourcing revenues tend to yo-yo on a quarterly basis (due to the phasing of contracts), Management Consulting revenues had shown little growth in over a year. But now in these latest figures, pure management consulting revenues are also on the up - running at £652m per quarter compared with £631m only 6 months’ ago.
The MCA growth statistics are derived from figures provided by its members, including prominent consulting firms such as Accenture, Capgemini, Atos Origin, PA Consulting, Deloitte, IBM and BT Syntegra. MCA members currently employ over 30,000 consultants and work for most of the top FTSE 100 companies and all government departments. The statistics are therefore viewed as one of the most critical indicators for the health of the UK consulting industry.
Alongside the annual growth figures, another positive message is the fact that 73% of the member firms reported higher revenues in this Quarter’s survey – highlighting the fact that the recovery is broad-based.
“This would explain the trend in recent months for almost all consulting firms to recommence aggressive recruitment campaigns, as capacity issues once again become a major concern for the coming year” commented Top-Consultant.com co-founder and Director Tony Restell
MCA press release: Q2 survey results
Consulting Jobs @ Accenture
Consulting Jobs @ BT Syntegra
Consulting Jobs @ Capgemini
Consulting Jobs @ IBM Business Consulting Services
Consulting Jobs @ PA Consulting